The Nanosynth Group PLC (LON: NNN) share price plunged 31.9% after announcing a placement to raise £0.4 million by issuing 222,222,222 new ordinary shares priced at 0.18p each, representing a 32% discount to yesterday’s closing price.
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Investors’ reaction to the discounted share placement was justified, given that the participating shareholders were offered a much lower price than the current market price, indicating that the company’s shares were worth less than their current price.
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Participating investors also received a warrant for every two shares they bought, exercisable at 0.5p each within the next two years from the date of admission to trading. The new shares are expected to start trading on the LSE’s AIM market on 16th January 2023.
Nanosynth specialises in the synthesis and application of nanoparticles to create new and improve existing products. The company believes that it can enhance the properties of products for specific applications by exploiting the functionality realised at the nanoscale.
The company does not do frequent market updates, with its last significant update being on 30th September 2022, when it released its half-year earnings results. Hopefully, this shall change this year with the company offering more updates, but only time will tell.
Mark Duffin, Nanosynth’s CEO, commented: “I am pleased that we are able to raise money to further our commercial objectives. We are receiving considerable interest from major household brands for our nanoparticle technology, and these funds will enable the Company to advance the progress of these discussions. We look forward to updating the market on these developments shortly.”
Nanosynth shares broke below a crucial resistance level that had been in place since July 2022. Luckily, the shares were trying to break back above this crucial level that emerged in July 2020 before being tested in July 2022.
*This is not investment advice.
Nanosynth (NNN) share price.
The Nanosynth (NNN) share price plunged 31.93% to trade at 0.1872p, from Monday’s closing price of 0.2750p.
eToro is a multi-asset investment platform. The value of your investments may go up or down. Your capital is at risk.